How Much is Limited Company Registration in Nigeria?

Are you thinking of starting a business in Nigeria? Perhaps you are wondering how much it will cost to register your company? In this article, we will discuss the costs involved in registering a limited company in Nigeria.

What is a Limited Company?

A limited company is a type of business structure where the company is a separate legal entity from its owners. This means that the company can enter into contracts, own property, and sue or be sued. The owners of a limited company are known as shareholders and are only liable for the company's debts up to the amount of their shareholding.

Types of Limited Companies in Nigeria

There are two types of limited companies in Nigeria: private limited companies and public limited companies.

Private Limited Companies

Private limited companies are the most common type of company in Nigeria. They are owned by individuals or groups of individuals who hold shares in the company. The shareholders are responsible for the management of the company and are liable for the company's debts up to the amount of their shareholding.

Public Limited Companies

Public limited companies are owned by the general public and are listed on the Nigerian Stock Exchange. They are required to have a minimum share capital of N10 million and must have at least 50 shareholders. The shareholders of a public limited company are not involved in the day-to-day management of the company but can vote on major decisions.

Cost of Registering a Limited Company in Nigeria

The cost of registering a limited company in Nigeria varies depending on several factors, such as the authorized share capital, professional fees, and other miscellaneous expenses. Here is a breakdown of the costs involved in registering a limited company in Nigeria:

Authorized Share Capital

The authorized share capital is the maximum amount of share capital that a company can issue. The Companies and Allied Matters Act (CAMA) 2020 requires that a private limited company has a minimum authorized share capital of N10,000. However, it is recommended that the authorized share capital should be at least N1 million. The cost of registering the authorized share capital with the Corporate Affairs Commission (CAC) is N5,000.

Professional Fees

Professional fees are the fees charged by lawyers, accountants, and other professionals for their services in the registration process. The fees charged by professionals vary depending on their level of expertise and the complexity of the registration process. However, the average professional fees for registering a limited company in Nigeria range from N50,000 to N150,000.

Other Miscellaneous Expenses

Other miscellaneous expenses include the cost of obtaining a tax identification number (TIN) from the Federal Inland Revenue Service (FIRS), the cost of obtaining a business permit from the state government, and the cost of purchasing a company seal. These miscellaneous expenses can range from N20,000 to N50,000.

Conclusion

In conclusion, the cost of registering a limited company in Nigeria depends on several factors, such as the authorized share capital, professional fees, and other miscellaneous expenses. The total cost of registering a limited company in Nigeria can range from N80,000 to N250,000.

FAQs

Q1. How long does it take to register a limited company in Nigeria?

The registration process usually takes between 2 to 4 weeks, depending on the complexity of the registration process.

Q2. Do I need a lawyer to register a limited company in Nigeria?

While it is not compulsory to engage the services of a lawyer, it is recommended that you do so to ensure that all the legal requirements are met.

Q3. Can I register a limited company online in Nigeria?

Yes, you can register a limited company online through the CAC portal.

Q4. Is it possible to change the authorized share capital after registration?

Yes, it is possible to increase or decrease the authorized share capital of a company after registration.

Q5. Can a foreigner register a limited company in Nigeria?

Yes, a foreigner can register a limited company in Nigeria, but they must comply with the requirements of the Nigerian Investment Promotion Commission (NIPC).